Did you know the advantages of investing in equity markets?
Consistent growth in foreign direct investment (FDI) and foreign institutional investors (FII) in the past two decades reflect emerging India’s growth story. Factors such as cheap labour, abundant resources, young demographic dividend, and high disposable income make India one of the most popular global investment destinations. The 2008 recession was one of the toughest periods for the global economy, with top global indices such as Nasdaq, Dow Jones, Nikkei, FTSE, and Hang Seng collapsing drastically. However, Indian stock markets stood up like a rock fighting the tide during the same time. In the past two decades, BSE Sensex grew almost 10 times from 3,000 in 1995 to around 30,000 in 2017. Moreover, as per a PTI report, net inflow from foreign portfolio investors (FPIs) into the Indian stock markets from Oct 01 to Oct 16, 2015 was Rs. 3,295 crore and that for the debt markets was Rs. 13,695 crore and thus, total net inflow was Rs 16,990 crore. A policy-oriented central government led by Prime Minister Narendra Modi brightens the growth horizons for India. The best part is that the rally isn’t over yet. Thus, if you missed out on the opportunity to maximize your money during this period, don’t worry, this is the most opportune time invest in the Indian stock markets for wealth creation. Let’s now look at IPO as one of the best possible ways in which you can invest in the Indian stock markets in addition to the direct buying and selling of shares, which happens in the secondary market.
Initial public offering, also known as IPO, has become a popular route for investors to enter the stock market. IPO provides investors with the opportunity to invest early in a company at a much lower share price. Thus, once the company grows with time, the IPO investors would benefit through higher valuation and RoI. In 2016, known as the year of IPOs, Indian companies that floated IPOs